The Asia division generated a total profit before tax of $15 million for the 2009 financial year, which was a significant improvement over the $15 million loss recorded the previous year. The net profit contribution reflects the continuing investment both in our current operating businesses and in developing new opportunities in selected markets, as well as the one off benefit of adopting deferred acquisition accounting in Thailand.

The operating environments for our current insurance operations in Thailand and Malaysia have been challenging, as these high growth markets have not escaped the impacts of the current global economic crisis. This has been reflected through significant falls in car sales and consumer confidence in both markets.

However, despite difficult economic conditions, our Thailand operations increased gross written premium by 2% in local currency terms during the year, predominantly through selective branch expansion outside the competitive Bangkok region. These businesses also achieved an insurance profit of $9 million, compared with a loss of $11 million last year. This equates to an improved insurance margin of 5.9% compared with negative 8% last year. This year's result was underpinned by a significant improvement in core underwriting performance.

The gross written premium for our 49% owned business in Malaysia increased by 2.6% in local currency terms during the year. The contribution to Group profit from this business has grown from a nominal profit in the 2008 financial year to an $8 million profit this year.

2009 was a significant year strategically, with major developments in India and Malaysia:

• We signed a joint venture agreement in November 2008 to establish a general insurance business in India with the State Bank of India for which the first of three regulatory approvals has been received.
• We increased our interest to 49% in the general insurance business in Malaysia, renamed AmG Insurance.

Despite the current economic conditions we believe the outlook for the Asia division remains positive.

The strong operational performance of our existing businesses in Thailand and Malaysia, along with the expansion opportunities afforded by the new joint venture in India and increased shareholding in Malaysia, means that we are well placed to take advantage of the growing Asian market.